A range of flow-on benefits may be on the horizon for the Sunshine Coast as the region looks to attract new luxury hotels.
Job creation, infrastructure investment and economic growth are just some of the bonuses of a push to attract more upscale brands.
After consultation with industry experts, businesses and the community, Sunshine Coast Council decided to make a proposed Temporary Local Planning Instrument (TLPI) at Council’s November 21 Ordinary Meeting.
The changes would apply to less than one percent of the Sunshine Coast region, in locations where hotels are already expected, and able, to be built.
The proposed TLPI provides for a targeted and time-limited set of planning provisions to encourage the development of upscale hotels – four star and above – in those already-identified areas.
This would include a height allowance and reduced on-site car parking requirements.
Before it can take effect, the proposed TLPI must be approved by the State Planning Minister.
The proposed TLPI complements a Strategic Policy that provides application fee relief and infrastructure charges discounts for accommodation hotel proposals.
The Policy has already been endorsed by Council as part of a holistic accommodation hotel incentives package.
Sunshine Coast Mayor Rosanna Natoli said with Council approval, hotels could already occur in the proposed areas under the current planning scheme.
“They are in major centres and tourism areas which are intended to have comprehensive infrastructure, that enhances our appeal as a premier travel destination,” Mayor Natoli said.
“For several years the tourism industry and business community have highlighted the urgent need for new, branded hotels.
“To confirm this need and help design the incentive package, Council engaged an independent consultant early in the development of the proposal.”
Breadth of accommodation needed
Research highlighted a significant shortfall in international branded hotels, with the last luxury hotel being completed more than 30 years ago.
About 70 per cent of visitor accommodation on the Sunshine Coast is self-catering, limited-service apartment accommodation.
Mayor Natoli said the Sunshine Coast was missing out on a variety of markets due to the limited upscale accommodation.
“We need a breadth of options to suit different visitor needs,” Mayor Natoli said.
“Upscale hotels will provide accommodation options for the high value and business markets.
“This type of visitor spends two-to-three times more, drives less, visits in off-peak times and stays longer.
“If we do not act now these visitors will continue to head – and spend their money – elsewhere.
“We acknowledge our community is concerned about high rise development, so it’s important to understand that the TLPI provides for only a modest increase in building height, in very limited circumstances, for only a single form of development and only for a short period of time.
“It’s not anticipated to result in development substantially different to what is currently allowed under the current planning scheme.”
Big impacts for our region
Economy Portfolio Councillor Terry Landsberg said that only a small number of development applications for upscale hotels are expected to be approved under the TLPI.
“Council expected the proposed incentives package, including the TLPI and Strategic Policy, would only result in a small number of new hotels being developed, the outcome would have a big impact,” Cr Landsberg said.
“It’s estimated that just one upscale hotel will generate an additional spend of $29.5 million annually in our region, supporting our local businesses, providing approximately 422 jobs during construction and another 165 jobs ongoing.
“Pending approval from the State Planning Minister, we look forward to being able to expand the quality and depth of our region’s accommodation offering, while also enjoying the benefits of new world-class restaurants and rooftop bars.”
Mayor Natoli added that it must be made clear that the proposed TLPI only relates to building height and car parking for a hotel development.
“All other provisions in the planning scheme such as biodiversity and coastal protection, continue to apply,” she said.
“After considering community feedback we have amended the proposed TLPI to include specific requirements relating to potential lighting impacts on priority fauna species, such as sea turtles.”
Mayor Natoli said following community feedback during the community consultation phase, Council agreed to remove the site located at 8 Mari Street, Alexandra Headland proposed in the original TLPI.
Fast Facts
- Research indicates 2,450 new hotel rooms are required on the Sunshine Coast over the next decade.
- Only one per cent of our region’s hotels are considered luxury. The last was built in 1989.
- The Sunshine Coast is the third highest visited region in the state behind Brisbane and the Gold Coast.
- Each new hotel in the region is estimated to generate an additional $29.5m in economic impact yearly.
- Upscale hotels attract visitors who spend two-to-three times more than average.
